A payment made by a company1 on the redemption, repayment or purchase of its own shares is not a distribution2 for the purposes of the Corporation Tax Acts3 if the company is an unquoted4 trading company5 or the unquoted holding company6 of a trading group7 and either Condition A or Condition B is met8.
Condition A is that:
(1) the redemption, repayment or purchase is made wholly or mainly for the purpose of benefiting a trade carried on by the company or by any of its 75% subsidiaries9;
(2) the redemption, repayment or purchase does not form part of a
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